Knowledge Centre

Key Statistics

$ Billion*

Total Defence Budget (FY 2019-20)

$ Billion*

Capital Expenditure Allocation (FY 2019-20)

$ Billion*

Revenue Expenditure Allocation (FY 2019-20)


Growth in Expenditure in 2019-20 over 2018-19

Sector Snapshot

India maintains the second largest standing armed forces in the world by size, is the eighth largest spender on defence and the second largest importer of defence equipment (SIPRI, March 2019). Considering the size of Indian Defence Forces, and their modernisation needs, India has maintained a consistent defence spending pattern over the last decade to build defence capability, as also its defence industrial base.

8 – 10 % CAGR

Steady growth


Micro, Small and Medium Enterprises (MSMEs)


FDI permitted with Government approval

Defence Industrial Licences issued till end of FY 2018-19

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Latest News

  • Talks between OFB and Defence Ministry going on

    New Delhi [India], Aug 17 (ANI): Defence Production Secretary Ajay Kumar on Saturday said the senior officials of the Ministry of Defence (MoD) are holding talks with the employee unions of the Ordnance Factory Board (OFB) over the transformation of the entity into public sector units.

  • First flight of AMCA in 2025 : DRDO Chief – Indian Defence Research Wing

    Military minds, aviators and scientists involved in research and development got a sleek preview of the advances in defence technologies at the Katre memorial annual lecture here on Wednesday. Like a physics lecturer and showing traces of his mentor Dr Abdul Kalam’s speaking style, Defence Research and Development Organisation (DRDO) chairman Dr Satheesh Reddy touched upon focus areas in defence that included aerospace, missiles, space technology, missile defence and weapons, sensors and artificial intelligence.

  • BAE Systems Starts Building UK's Second Type 26 Frigate

    BAE Systems has cut the first steel for its second Type 26 Frigate christened "HMS Cardiff," marking the formal start of production for the warship for the UK Royal Navy.Type 26 is designed to deliver the most advanced anti-submarine warfare (ASW) capability to the Royal Navy.

  • Kaveri engine : DRDO finds cost high; Safran struggling to fulfil its €580-million offsets obligation. – Indian Defence Research Wing

    The plan to develop the indigenous Kaveri fighter jet engine as part of the Rafale offsets deal with the help of French technology is believed to have fallen through after the Indian side found the pricing prohibitive. At least three people, who were part of the discussions, told ET that the project is now as good as over. The engine was supposed to power the indigenous Light Combat Aircraft (LCA) as well as future fighter jets.

  • BAE awarded DARPA contract for space machine learning

    BAE Systems has been awarded a US Defense Advanced Research Projects Agency (DARPA) phase 2 contract to develop machine learning capabilities to help the US Department of Defense gain better awareness of space scenarios.DARPA’s Hallmark

  • BAE Systems supports RAF Typhoon mission planning

    Thursday 15 August 2019From a software & IT services (SITS) perspective, it’s far easier to keep track of BAE Systems’ activities in Applied Intelligence (AI – formerly Detica), its business and technology consulting arm, than it is in the core BAE Systems business.

  • BAE Systems Australia partners with NSW government to support Western Sydney Aerotropolis

    BAE Systems Australia has committed to deliver a cutting-edge aerospace, space and innovation research and development facility as part of a university and advanced manufacturing precinct being delivered at the Western Sydney Aerotropolis.Premier Gladys Berejiklian

  • Manufacturing and Testing facility inaugurated at BEL Unit of Navi Mumbai

    Bengaluru. Mr Shripad Naik, Hon’ble Minister of State for Ayush & Minister of State for Defence, today inaugurated the new state-of-the-art manufacturing facility for Composite Materials, Environmental Testing & Finishing, established at the Navi Mumbai Unit of Navratna Defence PSU Bharat Electronics Limited (BEL).

  • UP govt appoints Lt Gen J K Sharma as Defence corridor advisor

    Lucknow, Aug 14 (UNI) Lt General J K Sharma (Retired) has taken over as the First Senior Defence Advisor to the Uttar Pradesh Government for the upcoming project of Defence Corridor in the state.

  • HAL pitches for 72 more of Su-30MKI

    State-owned Hindustan Aeronautics Ltd (HAL) has pitched for an order to manufacture four additional squadrons of the Su-30 MKI jets to quickly meet gaps in fighter squadron strength but the air force seems to be only keen on ordering replacements for aircraft that have been lost in accidents.The proposal for manufacturing 72 more fighter jets to add to the current order for 272 was made by the HAL but officials said that the air force has not been keen due to budgetary issues.

  • With Dassault Aviation shifting focus to FCAS, Rumors of Shifting Rafale production to India – Indian Defence Research Wing

    With Alleged corruption claims in the procurement of 36 Rafale combat aircraft long-buried now, IAF is presently preparing its self to take deliveries of the first batch of four aircraft next month in France comes unconfirmed reports of Dassault Aviation and Indian Ministry of Defence in discussion for procurement of a bigger deal which involves 114 units of Make In India Dassault Rafale gathers pace.

  • NAVAIR contracts BAE Systems to integrate CV-22 HMD with Forward Defensive Weapon System

    BAE Systems Controls has been contracted by Naval Air Systems Command (NAVAIR) for the software development associated with the integration of Defensive Weapon System (DWS) enhancements with the CV-22 tiltrotor helmet-mounted display (HMD).The DWS, which is also known as AN/AWG-35(V), is a belly-mounted GAU-17 7.62 mm machine gun that provides the CV-22 with a mission-configurable, crew-served, night vision-compatible weapon system.

  • Rafale Jets coming to India! IAF to receive first batch of French Fighters NEXT MONTH

    Indian Air Force (IAF) is getting ready to receive the first batch of four `Rafale’ fighter aircraft from Dassault Aviation in France next month.The Dassault Rafale is a French Twin-Engine,Canard Delta wing,Mulitrole fighter aircraft designed

  • Rohde & Schwarz wins another Kenyan monitoring equipment contract

    The Communications Authority of Kenya (CA) has placed another order with Rohde & Schwarz for mobile and spectrum monitoring equipment, reports Business Daily. This is phase two of a system to track network performance and customer service, after the initial contract in 2016 .

  • It’s pouring orders for Cochin Shipyard – Indian Defence Research Wing

    Busy days are ahead for the engineers and workers at Cochin Shipyard Limited (CSL) with the public sector company landing many lucrative orders, besides the ones it is already working on. These orders have to be completed by 2021. According to CSL spokesperson, recently, two RO Pax vessels designed and built by Cochin Shipyard Limited for the Inland Waterways Authority of India (IWAI) were launched.

  • Defence News, Air Force, Navy, ArmyDRDO working on hi-tech Directed Energy Weapons

    Directed energy weapons or DEWs are among the next bunch of military technologies that the Defence Research and Development Organisation (DRDO) is working on, Organisation Chairman G. Satheesh Reddy said on Sunday.

  • Hindustan Aeronautics Ltd. Awaits IAF’s Dues and LCA Order

    Hindustan Aeronautics Ltd. (HAL) is working towards completing by December the first indigenous Light Combat Aircraft (LCA) made to the Air Force’s final or FOC configuration, according to R. Madhavan, CMD of HAL which manufactures the planes for the IAF.

  • Brahmos-NG will have Long-range Air-to-Air missile variant – Indian Defence Research Wing

    A lighter sleeker variant of the Indo-Russian cruise missile dubbed as Brahmos-NG (Next Generation ) will be ready for developmental trials by 2024 said recently a top official of the Brahmos Aerospace. Indo-Russian joint venture company will develop a 1.5-ton Brahmos-NG which is nearly 1 ton lesser in terms of weight when compared to Brahmos-A missiles in service with Indian Air Force (IAF) and 1.5 ton lighter when compared to BrahMos currently in service today with the Indian Army and Indian Navy.

  • GRSE Launches Fifth FPV for Coast Guard

    Garden Reach Shipbuilders and Engineers (GRSE) has launched a fifth Fast Patrol Vessel (FPV) for the Indian Coast Guard (ICG).Named Kanaklata Barua after a freedom fighter from Assam, the vessel is the last of the five FPVs built by GRSE for the Coast Guard.

  • Big Boost: Kalyani allowed to export its Bharat 52 Guns

    Kalyani Group developed Bharat 52 155 mm/52 caliber towed guns have been granted export license by the Indian Government along with its ultra-light mobile 105mm field gun Garuda-105 guns said latest media report. Kalyani Strategic Systems Ltd (KSSL) sometime in last year had approached Government of India to grant its Internally developed 155 mm/52 calibers towed gun for export permission so that it can be available for evaluations and trials for prospective customers.

Industry Voice

Customer Testimonails
Mr. Baba N. Kalyani President, SIDM and Chairman, Bharat Forge Limited

Make in India is a priority, and defence is a focus sector. The role for SIDM in this context is cut out; it is to focus on indigenisation, R&D, connecting industry, academia and research institutions, in addition to facilitating participation of small and medium scale industries in defence production.

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Customer Testimonails
Mr. Jayant D. Patil Vice President, SIDM and Sr. Exec. Vice President, Whole-Time Director and Member of the Board, Larsen & Toubro Limited

SIDM has been created to act as the single point of contact between the industry and the government. SIDM endeavours to work closely with the government on policy related issues, collaborate with experts from the industry, academia, R&D institutions, and through this, bridge the gap between the armed forces and the industry. SIDM also provides thought leadership, facilitates dialogue, convergences and consensus to resolve policy related issues and aid the flagship Make in India campaign.

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Customer Testimonails
Mr. Atul Punj Member of the Executive Council of SIDM and Chairman, Punj Lloyd Limited

India has the 2nd largest armed force in the world and ranks 5th globally in terms of military spending. At the same time, most of this military spending is exhausted on importing equipment, which must change. Indigenisation is the need of the hour and SIDM is uniquely positioned to push the industry in this direction.

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